G l o b a lE n v i r o n m e n tFa c i l i t y

effectiveresponsivetargeted

GEF

“The impact of the GlobalEnvironment Facility andits partners ripples out-ward in every direction,helping to improve the

global environment while creating livelihoodsand opportunities for the world’s poor.”

Len GoodChief Executive Officer and ChairmanGlobal Environment Facility (GEF)

The Global Environment Facility (GEF)

The GEF unites 176 member governments—in partnership with international institutions, nongovern-mental organizations (NGOs), and the private sector—to address global environmental issues whilesupporting national sustainable development initiatives. It is the catalyst that drives actions toimprove the global environment.

The GEF is an independent entity. Initiated as a partnership between the U.N. EnvironmentProgramme (UNEP), U.N. Development Programme (UNDP), and the World Bank, the GEF is the designatedfinancial mechanism for the international agreements on biodiversity, climate change, persistent organicpollutants, and desertification. It also supports the work of global agreements to protect internationalwaters and the ozone layer. In all its work, the GEF promotes problem-solving partnerships and practicalsolutions.

The GEF mobilizes international cooperation, helping to move the world toward sustainable develop-ment. It links local and global environmental challenges. In just 12 years, it has evolved into an effec-tive and transparent entity with a solid track record of getting results. Today, the GEF is the largestfunder of projects to improve the global environment.

EffectiveGovernments, private companies, the scientific community, grassroots organizations, and NGOs all contribute their specialties and expertise to the GEF’s work. These collaborations create strongerresults and save resources.

At the heart of the GEF’s work are its three Implementing Agencies, which share the credit for the GEF’smeasurable on-the-ground achievements. Seven other regional development banks and specializedU.N. agencies also manage GEF projects and contribute to the GEF’s impact. To date, the GEF has over1,300 projects in more than 140 developing nations and countries with economies in transition.

Leveraging is another area where the GEF shows its effectiveness. The GEF’s investments earn $3 forevery $1 committed by the organization. Over the past decade, the GEF has committed $4.5 billion in

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grants and leveraged $14 billion in cofinancing. This impressive recordillustrates the wide impact of the GEF’s work.

ResponsiveOn the country level . . . All GEF projects are country-driven. In orderfor the GEF to support a project, the country’s government must approveit. The project needs to reflect the national priorities of the countryinvolved.

On the local level. . . Currently, more than 700 NGOs and communitygroups participate in GEF activities and spearhead medium-sized proj-ects. Under the GEF’s Small Grants Programme, administered by UNDP,more than 4,000 small grants have gone directly to NGOs and commu-nity groups and that funding is being doubled.

On the global level . . . GEF’s mandate has continually evolved toreflect new international concerns and a changing world. This is seen inthe expansion of GEF’s mandate to include land degradation and per-sistent organic pollutants. In 2002, the international donor communityshowed its support for the GEF by pledging an additional $3 billion tobroaden and accelerate the GEF’s work—it was the largest replenish-ment ever.

Targeted The GEF’s work is targeted to a specific global agenda: biodiversity,climate change, the ozone layer, international waters, land degradation,and persistent organic pollutants. Having special areas of focus allowsthe GEF to concentrate its resources and expertise—and generate agreater impact.

4GEF Implementing AgenciesU.N. Development Programme

(UNDP)U.N. Environment Programme

(UNEP)World Bank

GEF Executing AgenciesAfrican Development Bank (AfDB)Asian Development Bank (ADB)European Bank for Reconstruction

and Development (EBRD)Inter-American Development Bank

(IDB)U.N. Food and Agriculture

Organization (FAO)U.N. Industrial Development

Organization (UNIDO)International Fund for Agricultural

Development (IFAD)

The GEF Mandate

The GEF enters its second decade with a strong mandate to expand itswork to address the disturbing environmental trends that permit thegrowth of poverty, disease, hopelessness, and conflict.

Reducing Risks of Climate ChangeAs the financial mechanism for the U.N. Framework Convention onClimate Change, the GEF is helping developing countries promote the useof clean energy and reduce the consumption of fossil fuel. The GEF is thelargest funder of renewable energy in the developing world, supportingenergy efficient lights as well as solar, wind, geothermal, biomass, andsmall hydropower energy. In 12 years, the GEF's clean energy portfolio hasgrown to more than $1.6 billion in grants for projects with a total value of

International private companies

Regional academic institutions

Regional groups

In-country private companies

International groups

In-country academic institutions

Local/national groups

46%

21%

13%

9%

9% 2%

Nongovernmental GroupsInvolved in GEF Projects

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more than $10.6 billion. Accelerating the transition to efficient and renewable energy will bringenormous economic, social, and environmental benefits.

The GEF also addresses climate change issues through GEF’s Small Grants Programme. The genius of theSmall Grants Programme is that it touches the lives of thousands of ordinary people—the NGOs, com-munity organizers, small entrepreneurs, and other leaders in local communities—who need the mostassistance to respond to climate change. To date, the GEF has committed $117.4 million in small grantsto promote locally appropriate solutions to this and other global environmental concerns.

All of GEF's climate programs are helping countries to adapt to the adverse effects of climate change.Particularly at risk are small island states with fragile coastal ecosystems, such as the Caribbean andPacific islands. The GEF is working with these countries to identify areas vulnerable to climate changeand sea level rise, develop cost-effective response programs, and enhance regional and national capabili-ties for dealing with climate change problems.

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Stemming Biodiversity LossFrom ocean depths to high mountaintops, from dry deserts to moist rain forests, the earth collectivelysupports millions of species of plants and animals. All people, regardless of birth or economic status,depend on this natural endowment for their lives and livelihoods. Loss of these natural goods andservices hinders national development, taking the most serious toll on those who depend most directlyon natural resources for their survival—the poor.

The GEF funds and supports practical measures to encourage the conservation and sustainable use ofbiodiversity, which improves the livelihoods of those dependent on natural resources. Since 1991, theGEF has provided $1.5 billion and leveraged $2.5 billion more from its partners for more than 450 proj-ects that address the loss of globally significant biodiversity. As the financial mechanism for the U.N.Convention on Biological Diversity, the GEF supports a biodiversity portfolio that centers on critical,life-supporting systems and the interactions among them: drylands, forests, mountains, agriculturalbiodiversity, and coastal, marine, and freshwater resources.

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Preventing Ozone DepletionOzone-depleting substances (ODS) damage the earth’s natural layer of protection from ultraviolet sun-light. Exposure to this type of radiation is associated with cancer and eye maladies, such as cataracts.It also harms wildlife and aquatic ecosystems.

Since 1992, the GEF has been approving grants and assistance to countries—such as the RussianFederation and the nations of Eastern Europe and Central Asia—that are not eligible for assistancefrom the Multilateral Fund for the Montreal Protocol. Success with reducing ODS has been dramatic.In the 14 countries with the most GEF projects, ODS consumption has decreased by more than 90 percent.In Russia, which was one of the largest producers and consumers of ozone-depleting substances, ODSproduction was discontinued in 2002 as a result of the GEF’s activities.

Safeguarding International WatersThe world’s marine and freshwater resources are under enormous stress, threatening the future of the

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ecosystems, people, and economic development that depend on them. Transboundary waters, coastaland marine areas, lakes, wetlands, coral reefs and other water resources are being degraded by pollu-tion from land-based activities, poor management practices (such as land conversion and dredging),the introduction of non-native species, overfishing, and other exploitation.

The GEF works with 139 countries on projects to strengthen the integrated management of land andwater resources that are so vital to keeping international waters healthy. It has committed to invest-ing more than $1 billion by 2007 to address critical water problems.

Eliminating Persistent Organic PollutantsPersistent organic pollutants (POPs) pose a global threat. They are particularly dangerous to develop-ing countries, which often lack the technical or financial means to introduce alternative technologiesto reduce their use or dispose of them safely. These toxic chemicals can resist degradation and traveleasily through air currents, water, and migratory species. Examples of POPs include polychlorinated

biphenyls—industrial chemicals widely used in electrical transformers—and the insecticide mirex, which many countries rely on for termite control. These pollutants and other POPs have been linked to cancerand other health threats.

As the interim financial mechanism for the Stockholm Convention onPersistent Organic Pollutants, the GEF is assisting more than 100 coun-tries with national implementation plans. These countries are buildingtheir national capacity to handle POPs and raising awareness of theproblem. Through GEF-supported activities, they are preparing for thephase-out and elimination of POPs and the switch to sustainable alter-native chemicals, technologies, and practices.

Preventing Land DegradationAround the world, land degradation, especially desertification and deforestation, is reaching alarming levels. Each year 12 million hectaresare lost through desertification—that is enough land to grow 20 milliontons of grain. In the tropics alone, deforestation claims 15.2 millionhectares of forests annually. Both desertification and deforestation have triggered large-scale population movements, disrupted economic development prospects, aggravated regional conflicts and instability, andthreatened the lives and livelihoods of people living under its shadow.

The GEF is increasing its work on land degradation by building on cur-rent activities as well as on the experience and lessons of its partners.The GEF’s land degradation strategy recognizes that land and waterresources are key to sustainable development in the world’s dry areas.Over the next three years, GEF expects to commit more than $500 millionto improve sustainable land management. This is the largest financialcommitment to the Convention to Combat Desertification since itsadoption.

“The willingness of the GEF to serve as a financialmechanism for theConvention to CombatDesertification, as well asthe GEF Assembly’s deci-sion to make land degrada-tion a separate GEF focusarea, are significant break-throughs.”

Kofi AnnanU.N. Secretary-General

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Cofinancing amount

GEF allocation

23%

77%

The Leveraging Effect of GEF Support

1991–2003

$1,638.7

$1,591.5

$627.7

$274.2$172.0

$86.4$23.4

$109.9

$138.4

$20.9

$81.1

$50.1

Land degradation

Persistent organic pollutants

Ozone depletion

Multiple focal areas

International waters

Climate change

Biodiversity

Persistent

Multiple Focal Areas

International Waters

Climate Change

Biodiversity

Total GEF Allocation by Focal Area

(in millions of dollars)1991–2003

The GEF Grant Process

The GEF grant process starts with an idea.

A local nongovernmental organization, a private company, a governmentagency, a national institution, or others in a developing country have anidea on how to help achieve national and strategic priorities—for example,an innovative way to bring renewable energy to a rural area that has noelectricity.

The GEF funds projects that will improve the global environment and promote sustainable development. It provides small grants and financesmedium-sized and full-sized projects. In addition, the GEF funds enablingactivities—that is, activities to help countries prepare national strategiesand action plans to fulfill their obligations to global environmental conventions.

Groups seeking GEF funding work through UNDP, UNEP, or the WorldBank— GEF’s Implementing Agencies. Groups can also contact GEF’sExecuting Agencies: the African Development Bank (AfDB), the AsianDevelopment Bank (ADB), the European Bank for Reconstruction andDevelopment (EBRD), the Inter-American Development Bank (IDB), theU.N. Food and Agriculture Organization (FAO), the U.N. IndustrialDevelopment Organization (UNIDO), and the International Fund forAgricultural Development (IFAD).

To date, the GEF has disbursed more than 4,000 small grants directly toNGOs and community groups. Local UNDP offices are responsible fordispersing small grants, up to $50,000, for projects that reconcile globalenvironmental benefits with sustainable livelihoods for local people. For

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example, thanks to a GEF small grant supporting local community management of the Khama RhinoSanctuary, the population of white rhinoceros in Botswana has doubled.

Medium-sized grants, which are for projects up to $1 million and are accessible to NGOs, and full-sizedgrants, which start at a $1 million, go through a more formal process. Because of their complexities,full-sized projects can require more time than medium-sized projects to move from idea to implemen-tation.

GEF criteria include the following:n

Country drivenness: The project needs to reflect the national priorities of the country involved.Any medium or full-sized project to be supported by the GEF needs approval of the country’s gov-ernment. The project proposal should be endorsed by the GEF’s primary contact person or “opera-tional focal point” in the country.

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Project design/incrementality: The project proposal needs to explain what the problem is, whathappens if the project is not carried out, what the project will accomplish with GEF involvement,and what benefits the project will bring to the local, national, regional, and global environment.

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Replication: Experience gained through the project must be transferable to other projects andother countries.

The GEF offers initial project preparation grants of up to $25,000. After preliminary approval of the initial proposal, further funding to flesh out details of project design and operation is also available—up to $350,000 for a single-country project, $700,000 for multiple-country projects, and as much as $1 million for technical design and feasibility work for large-scale projects.

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Fast Facts About GEF

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In 12 years, GEF has evolved from a pilot program to the largest single source of fundingfor the global environment.

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GEF is the designated financial mechanism for the international conventions on biodiversity, climate change, persistent organic pollutants, and desertification.

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GEF’s $18 billion portfolio supports more than 1,300 projects in 140 developing countriesand countries with economies in transition. GEF has also provided more than 4,000 small grants directly to community groups and NGOs.

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Every $1 invested by GEF leverages $3 in cofinancing from partners.

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GEF membership has grown from less than 30 member countries to 176.

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UNDP, UNEP, and the World Bank are the Implementing Agencies for GEF projects.Seven Executing Agencies, including regional development banks and specialized U.N. agencies, also manage GEF projects.

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The GEF is an independent financial entity.

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Representatives from all GEF member-states provide overall direction to the GEF throughthe GEF Assembly, which meets every four years.

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GEF’s governing council develops, adopts, and evaluates GEF programs and policies; its 32 members represent 16 developing countries, 14 developed countries, and 2 countrieswith transitional economies.

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An independent Scientific and Technical Advisory Panel reviews GEF project proposals and provides expert advice. An independent Monitoring and Evaluation Unit assesses the impact of the GEF’s work.

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More than 700 NGOs actively participate in GEF activities and oversee GEF projects.

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A Sample of GEF’s Impact

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In Eastern Europe, Central Asia, and Russia, countries have cut their use of chemicals that deplete the ozone layer by 90 percent.

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Projects in the humid tropics, Brazilian Amazon, Guyana Shield, Caucasus, and Himalayas collectively work to conserve the largest remaining tracts of tropical rainforests, home to millions of species.

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GEF projects have contributed to the global market for solar home systems, which nowtotals more than 1 million rural households. In India, wind power generation capacityincreased from zero to over 1200 megawatts—enough to power more than 5 million typical homes.

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A large-scale effort by GEF and partners is eliminating stockpiles of obsolete pesticides,including persistent organic pollutants, which present a serious health threat in Africancountries.

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From the Nile Valley to the Black Sea, countries sharing the world’s great watersheds are making joint investments in water quality and quantity.

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GEF funding to restore degraded wetlands in Romania has resulted in the removal of an estimated 55 tons of phosphorus, 1200 tons of nitrogen, and 40,000 tons of sedimentfrom the Danube River before it enters the Black Sea.

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About 70 percent of all external funds for World Heritage Sites designated by UNESCO are supplied through GEF.

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Five million energy efficient lights have been installed through GEF projects. In Poland,the number of households using compact fluorescent lighting increased from 11 percentto 20 percent.

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The countries of Southern Mexico and Central America are helping restore theMesoAmerican Biological Corridor through a GEF-supported project which combinesnature conservation with improving people’s standard of living.

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GEF’s allocation of more than $500 million to prevent and control land degradation over the next three years is the largest financial commitment to the Convention to CombatDesertification since its adoption.

Photo Credits Cover: Ross Horowitz, ImageBank Page 1: RonaldThomas Page 2: Art Wolfe, Stone Page 4: Ron Giling,Still Pictures Page 5: Space Shuttle Discovery, StonePage 6: David Tipling, Nature Picture Library Page 7:Franz Lanting, Minden Pictures Page 8: WilliamWaterfall, Pacific Stock Page 9: David Turnley, CorbisPage 10: Darrell Gulin, Corbis Page 12: Steve Turek,International Coral Reef Information NetworkPage 13: Mark Edwards, Still Pictures Page 14: Luiz C.Marigo, Still Pictures Inside Back Cover: FranzLanting, Minden Pictures Back Cover: Tui de Roy,Minden Pictures

Production Credits Editor: Shirley Geer Writer: Carollyne Hutter Design: Patricia Hord.Graphik Design Printer: Jarboe Printing November 2003

G l o b a lE n v i r o n m e n tFa c i l i t y

PRINTED ON ENVIRONMENTALLY FRIENDLY PAPER

For more information, contact:

Hutton ArcherSenior External Relations CoordinatorGlobal Environment Facility1818 H Street NWWashington, DC 20433 USATel: 202–473–0508Fax: 202–522–3240

www.theGEF.org